News Releases
BMO Financial Group President and CEO Tony Comper, today called for a redoubling of the efforts to open the U.S. border to Canadian beef, and end the multibillion-dollar-a-year BSE crisis that continues to beleaguer the Canadian cattle and agricultural industry.
Mr. Comper told an audience of the Manitoba Chambers of Commerce in Winnipeg that, as a leading bank lender to the beef cattle industry and the #2 bank lender to the agricultural industry in general, few organizations have a clearer picture of the ongoing BSE crisis and its impact on its agricultural clients and their counterparts in related industries.
"That's why I am speaking out today and saying that I firmly believe Canadian beef is safe. I know there has been lots of good effort to get the border re-opened, but let's all push harder to get it done now."
Mr. Comper pointed out that of all the Canadian banks, BMO has the most to gain by seeing the BSE crisis resolved and outlined the efforts his bank has made to help its clients in every way possible including:
- A BSE Disaster Assistance Program introduced a year ago, when the crisis first broke, and recently extended through May 1, 2005 that offers deferral of principal payments on loans and mortgages, the reduction of interest rates on lines of credit; and the waiving of new-loan application fees.
- New procedures to deal with true emergency situations, with options that include establishing new and manageable lines of credit, extending amortization periods and/or restructuring credit terms and conditions.
"If any or all of these actions strike a familiar chord with our long-term customers in southern Manitoba, it may be because we put a similar program into play here seven years ago, in the wake of the Flood of the Century," said Mr. Comper. "And while our assistance programs are designed to help clients through disasters of the natural kind, we have also effectively put them to work during economic downturns as well, whether they are local or national in scope.
In other words, when our clients get hit by any force beyond their control, they get a lot more than sympathy. We step right in and volunteer solutions," he said.
"This is a mindset that goes back a long way in my organization. When the '90s recession struck, for example, we stepped up our marketing to the business banking sector - at the same time as our competitors were withdrawing from the field.
"Bold move? Perhaps. But also the kind of move that can help further the stated ambitions of a bank committed to becoming the #1 business bank in Canada,"
he said.
Strong economic outlook for Manitoba
Mr. Comper also shared highlights of BMO Financial Group economists' outlook for the Manitoba economy, part of a full analysis of the Canadian economy that will be released later today.
Highlights include:
- After posting 1.4% growth in GDP in 2003, Manitoba looks set to bounce back to 3% growth in both 2004 and 2005.
- Housing starts will drop off somewhat in 2005, to a still healthy 3,600 units when considered against the backdrop of 4,400 starts in 2004 - the best in 16 years.
- A substantial comeback is expected for Manitoba's manufacturing sector over this year and next, with especially strong growth in two major exports, food and transportation equipment - driven in large part by a resurgence in U.S. demand.
- Agricultural prospects are encouraging as soil moisture conditions have continued to improve and cash receipts have risen solidly in 2004.
- The outlook for hydroelectric production is brightening considerably as water flows have recovered sharply and are now above normal.
- And stronger economic growth is helping the provincial government bring its budget back into a balanced position.
- Labour market conditions are improving as employment growth picks up from its tepid pace in 2003. Manitoba's projected jobless rate of 5.2% this year would be the second lowest in Canada, after Alberta.
- Retail sales in Manitoba are projected to grow by eight per cent in 2004, second only to Alberta, and almost double the rate for Canada as a whole.
Dramatic increase in market share
Mr. Comper noted that BMO has enjoyed a dramatic increase in market share as a result of what he termed a dedication to the small business market through the bad times as well as the good.
"We have dramatically increased our market share in small business lending over the past 10 years to just under 20% today, and brought ourselves within striking distance of #1. In fact, BMO is the only Big 5 bank that has grown its market share since 1996," he said.
"One of the things that I believe truly sets us apart in this race is a plugged-in sensitivity to the extraordinary challenges that can and often do descend on our business banking customers."
In addition to creating most of the new jobs in the economy, small business customers make up our consistently most profitable customer base at BMO. They're the best investment around - our "life's blood," as I once described it.
Competition for high-quality customers in a mature market
"Competition for high-quality customers has never had a keener edge, thanks in large part to the fact that for financial services providers, Canada has become a mature market," said Mr. Comper. "With relatively fewer new customers coming on stream and a growing number of first-rate providers vying for their attention, growth strategies must of necessity focus on expanding relationships with existing customers."
Mr. Comper outlined a number of BMO initiatives that he believes reflects a cultural transformation and technological revolution that BMO has undergone over the past number of years, with the aim of becoming the only bank customers will ever need to succeed in any part of their lives:
- A full-spectrum cash management and deposit service called DirectLine for Business.
- A business premium rate savings account that assigns investment-type interest rates on balances up to $500,000 without any loss of flexibility.
- Direct Banking for Business, accessible 24/7 via the phone or the Internet, where dedicated and highly trained direct banking managers can approve loans of up to $250,000 on the spot. We are proud of the fact that BMO approves 95% of requests processed for business loans of $1.5 million and under.
- A comprehensive suite of banking solutions aimed at specific and previously under-served sub-groups.
- Financial Services Program for Poultry Producers provides custom-designed solutions for Canada's poultry producers in light of the special factors at play in their supply-managed industry.
- Insurance Brokers Program allows and encourages independent insurance brokers to tap into a comprehensive suite of solutions developed especially and exclusively for the industry.
- Self-Employed Homeowner Mortgage, featuring a streamlined approval process, allows both self-employed and commission-based sales people to obtain a traditional residential mortgage based on personal credit history.
- Our brand-new Professionals Program, to be launched next month, custom-provides business and personal banking solutions for doctors, dentists, lawyers, veterinarians, optometrists, chiropractors and pharmacists; and does so for every stage of the professional life-cycle.
"Overwhelmingly Canada's small businesses are founded and owned and managed and led by some of the best people around - people with whom any organization would be happy and proud to do business.
"So no matter what measures we are taking to attract and accommodate these extraordinary people, and persuade individuals of the calibre of those gathered here this morning to make BMO the only bank they want or need, it's just good business."
The following Radio Clips are available at the listed times and co-ordinates:
Date of Feed - Thursday, October 21, 2004
Time of Feed - 12:15 - 12:20pm EDT and 1:15 - 1:20pm EDT
Co-ordinates - BN Channel 4
Note to Photo Editors: A photo accompanying this release is available on the Canadian Press Photo Network
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BMO President and CEO Tony Comper calls for a redoubling of efforts to open the U.S. border to Canadian beef in a speech before the Manitoba Chambers of Commerce in Winnipeg, Thursday, October 21, 2004. (BANK OF MONTREAL PHOTO/Mike Deal)